Metropolitan Stock Exchange Shares

Annual Report Summary

The Metropolitan Stock Exchange of India Limited (MSE) Annual Report for 2020-21 provides a summary of the company's performance, initiatives, and future outlook. MSE is a recognized national-level stock exchange offering an electronic platform for trading in various segments including Currency Derivatives, Equity, and Equity Derivatives.

Financial Performance and Highlights:

• Total Revenue increased to Rs. 1,881 Lakhs in FY 2020-21, up from Rs. 1,575 Lakhs in FY 2019-20.
• Operating Revenue increased to Rs. 585 Lakhs in FY 2020-21 (Rs. 525 Lakhs in FY 2019-20). This includes increases in transaction fees income to Rs. 158 Lakhs and listing processing fees to Rs. 51 Lakhs.
• Total Expenses decreased to Rs. 4,311 Lakhs from Rs. 4,910 Lakhs. The decrease stems from lower operating expenses, employee benefits expenses, and administration costs.
• The company reported a loss before tax of Rs. (2,430) Lakhs.
• The Board did not recommend any dividend on the equity capital.
• Earnings per share were negative (Rs. 0.05).

Company Overview and Strategy:

• MSE is a full-service National level Stock Exchange with license to operate in Equity, Equity Derivatives, Debt Segment and Currency Derivatives Segment
• The Exchange temporarily suspended trading in its debt segment from September 18, 2020.
• MSE focuses on increasing market share in existing segments and plans to introduce new products based on market research and participant feedback.
• The company's IT infrastructure is designed for performance, reliability, redundancy, and security and includes a robust trading system with high availability.
• MSE maintains a Disaster Recovery Site (DRS) and has Recovery Time Objective (RTO) and Recovery Point Objective (RPO) of 45 minutes and 15 minutes, respectively.
• The company complies with SEBI's Cyber Security & Cyber Resilience Framework and maintains ISO certifications for information security and quality management.

Subsidiaries:

• MSE has two subsidiaries: Metropolitan Clearing Corporation of India Limited (MCCIL) and MSE Fintech Limited.
• MCCIL undertakes clearing and settlement and saw its operational income increase.
• MSE Fintech, initially proposed as a KYC Registration Agency, is yet to commence operations and now proposes to provide IT, Application Service Provider (ASP), and other related services.

Board and Committees:

• The Board consists of six directors, including five Public Interest Directors (PIDs) nominated by SEBI.
• Mr. Ajai Kumar was re-appointed as Public Interest Director effective October 23, 2020.
• Ms. Trishna Guha and Mr. S. V. D. Nageswara Rao's terms as PIDs have been extended to October 3, 2024.
• The Board has various committees, including Audit Committee, Stakeholders Relationship Committee, Nomination and Remuneration Committee, and Risk Management Committee.

Other Key Points:

• The employee count was 145 as of March 31, 2021, down from 160 a year prior.
• The Statutory Auditors, T. R. Chadha & Co. LLP, expressed qualification regarding the company’s ability to continue as a going concern due to recurring losses, despite actions taken to address this.
• The company has a Vigil Mechanism/Whistle Blower Policy and has constituted an Internal Complaints Committee (ICC) to address sexual harassment complaints.
• There were 41 resources dedicated to regulatory functions, costing Rs. 3.59 crores.
• During the year, the Registered office of the company shifted to Building A, Unit 205A, 2nd Floor, Piramal Agastya Corporate Park, L.B.S Road, Kurla West, Mumbai - 400070.
• The exchange initiated a forensic audit as per SEBI directions.
• MSE implemented various SEBI measures and updates, including UCC Updation, Mobile Number Revocation List (MNRL) checks, and new peak margin rules.
• MSE's outlook involves strengthening core business, expanding product offerings, leveraging technology, and forming strategic partnerships.
• The major risks include decline in industry activities, regulatory changes impacting competition, and cyber security threats. MSE has also considered the impact of the COVID-19 pandemic on their business and operations.
• The company is continuing their effort to be compliant with the SEBI as the regulatory body.